Buying a home with land rights? Stay safe from fraud; Things to keep in mind while investing in plots
While there is no scope of expansion of a flat, homes with land rights can be expanded vertically up to three to four floors, thus providing ample space for all family members.
- Plotted developments have been on a rise in the last few years
- Buyers should get due diligence done before finalizing a deal
- Homes with land right give scope of vertical expansion
Owning a home is a dream for a majority of people. In cities where spaces are constrained, vertical development paves the way for skyscrapers. However, post covid, there has been a rise in demands for plotted homes or homes with land rights. While there is no scope of expansion of a flat, homes with land rights can be expanded vertically up to three to four floors, thus providing ample space for all family members. However, in recent times, there have been reports of frauds where one plot is sold to multiple people or issues infrastructure deficiencies. A buyer should always get the due diligence done while investing in plotted homes.
Manoj Gaur, President CREDAI NCR & CMD, Gaurs Group, said that a buyer has to exercise extreme caution in the process of buying a plot. "It is vital to ensure that the project has been approved by RERA, as its stringent norms guarantee customers its genuineness and peace of mind," said Gaur.
Advocate Jaspreet Singh Rai said that buyers should get due diligence done to verify all the records of the property over the last 70 years. "The land should neither be mortgaged nor there should be a loan against it. Buyers should also check whether the basic amenities like sewerage, electricity connections, roads, schools, hospitals and public transport mediums are available and accessible at the project site," said Advocate Rai.
Pushpender Singh, MD, JMS Group said that the price appreciation of plots is faster when it’s in proximity to adequate commercial and social infrastructure. "It's advisable to go for plots which are in close vicinity to these facility-providing centres. Also, it is better to scout lands and check the essential documentation and approvals before closing on a particular plotted land," said Singh.
Advocate VK Bansal (Senior RERA Lawyer) said that if a plot is being offered under government-approved schemes, then that should have approval from RERA and other competent authorities. "It should also have fire NOC, sewer and electricity infrastructure developed by the builder or coloniser," said Advocate Bansal.
Sanjay Mandava, Founder & CEO at Landeed, said that while the location is important, buyers often overlook the evaluation of the Encumbrance Certificate or EC. "An encumbrance certificate establishes that there are no encumbrances for transactions on the property, and the ownership of the property is clear and marketable. The EC also shows the transaction history of the property," said Mandava.
Hence, buyers should keep the above things in mind while closing-in on a plotted property to have a secured and litigation-free asset.